Karachi Stock Exchange Weekly Analysis 14 Nov, 2015


Top gainers of last week were: Associated Services Limited, Packages Limited, Shell Pakistan, Pakgen Power Ltd., IGI Insurance, Millat Tractors, Mari Petroleum, Engro Foods Ltd, Colgate Palmolive and Dolmen City Rei.

Top losers of last week were: Ibrahim Fibres, TRG Pakistan Ltd, Pak Elektron, Jah.Sidd. Co., Arif Habib Corp, Muree Brewery Co Ltd, Indus Motor, Nishat Chunian Power, P.S.O. and National Foods.

Top ten volume leaders: SSGC, KEL, TRG, SNGP, PAEL, JSCL, PIBTL, BOP, NML, ISL, and PTC.

The Karachi Stock Exchange (KSE) market index remained under pressure throughout the week managing to end at 34,145pts, down 0.82%WoW. The benchmark Karachi Stock Exchange (KSE) 100-share Index lost 282 points, or -0.82 percent, to close the week at 34,145 points. KSE 30-share Index shed 348 points, or -1.69 percent, to end at 20,207 points.

According to experts of http://www.karachistockexchange.org, following news have played vital role in Karachi Stock Market index movement:

  • Continuous foreign selling coupled with decline in oil prices (WTI Crude down 8.3% WoW) weighed heavily on the market as the benchmark KSE-100 index declined 0.8% WoW to close at the 34,145 level
  • Average daily volumes fell by 0.9% to 185mn shares and traded value also declined to Rs8bn/US$76mn (12.3%)
  • Foreigners trimmed their positions amid pressure on global markets. Over the week, foreigners were net sellers of US$5.7mn with major selling in Cement (US$3.4mn) and Chemical (US$3mn) sectors
  • The government has borrowed PKR96bn from commercial banks through Power Holding (Private) Limited (PHPL), to cap overdue payables below 218bn as per agreement with the IMF
  • Pakistan’s debt affordability has weakened after it shifted to non‐conventional loans by issuing USD3.5bn worth of international bonds, increasing its borrowing costs. Pakistan has been given a B3 rating, which is a sub‐investment grade with a stable outlook
  • The domestic steel industry is seeking increase in regulatory duty and sales tax on the import of finished steel products for creating a level playing field. Regulatory duty on finished steel products must be increased to at least 30% from 15% and sales tax to 30% from 17% on imported finished steel products to protect the domestic industry
  • The OGRA increased system losses in gas tariff to over 7% from 4.5% for two utilities, involving an additional revenue impact of around PKR67bn
  • The GoP approved the sovereign guarantee and foreign currency loan agreement for Sindh Engro Coal Mining Company’s (SECMC) Thar coal mining project
  • WB projected Pakistan's GDP growth at 4.5% in FY16 and to 4.8% in FY17
  • Moody’s Investors Service revised upwards the outlook for the Pakistan banking system to stable from negative
  • SBP is expected to release the date of its upcoming Monetary Policy Statement (MPS) by next week

Following are few BUY recommendations:

Pak Suzuki Motors (PSMC) – BUY
Current Price: PKR 465.9
Target Price: PKR 542

Indus Motor (INDU) – BUY
Current Price: PKR 1,097.0
Target Price: PKR 1293.99

Dera Ghazi Khan Cement (DGKC) – BUY
Current Price: PKR 137.9
Target Price: PKR 169.5

Lucky Cement (LUCK) – BUY
Current Price: PKR 520.8
Target Price: PKR 665

Maple Leaf Cement (MLCF) – BUY
Current Price: PKR 72.5
Target Price: PKR 87.4

Fauji Cement (FCCL) – BUY
Current Price: PKR 34.96
Target Price: PKR 39.50

Kohat Cement (KOHC) – BUY
Current Price: PKR 218
Target Price: PKR 268

Fauji Fertilizer Company (FFC) – BUY
Current Price: PKR 122.54
Target Price: PKR 163.5

ENGRO Fertilizer Limited (EFERT) – BUY
Current Price: PKR 84.88
Target Price: PKR 125.00

Fatima Fertilizer (FATIMA) – BUY
Current Price: PKR 46.40
Target Price: PKR 58.9

Engro Corporation (ENGRO) – BUY
Current Price: PKR 294.39
Target Price: PKR 362.00

Engro Foods Limited (EFOODS) – BUY
Current Price: PKR 158.2
Target Price: PKR 181.1

Oil & Gas Development Co. (OGDC) – BUY
Current Price: PKR 133.4
Target Price: PKR 174.8

Pak Oilfields (POL) – BUY
Current Price: PKR 319.3
Target Price: PKR 423.0

Pakistan Petroleum (PPL) – BUY
Current Price: PKR 123.2
Target Price: PKR 193.8

Pakistan State Oil (PSO) – BUY
Current Price: PKR 338.4
Target Price: PKR 456.8

Attock Petroleum (APL) – BUY
Current Price: PKR 520.0
Target Price: PKR 620.0

K-Electric Co. (KEL) – BUY
Current Price: PKR 7.9
Target Price: PKR 13.9 

Kot Addu Power Co (KAPCO) – BUY
Current Price: PKR 85.8
Target Price: PKR 97.00

Nishat Mills (NML) – BUY
Current Price: PKR 102.7
Target Price: PKR 168.5
Pakistan Telecommunication (PTC) – BUY
Current Price: PKR 16.9
Target Price: PKR 25.1

Allied Bank Limited (ABL) – BUY
Current Price: PKR 98.0
Target Price: PKR 120.7 

National Bank (NBP) – BUY
Current Price: PKR 56.1
Target Price: PKR 69.0

United Bank Ltd (UBL) – BUY
Current Price: PKR 163.0
Target Price: PKR 194.00

Habib Bank Limited (HBL) – BUY
Current Price: PKR 210.0
Target Price: PKR 270

Bank Al-Falah (BAFL) – BUY
Current Price: PKR 29.8
Target Price: PKR 34

Bank Al-Habib (BAHL) – BUY
Current Price: PKR 44.76
Target Price: PKR 68

Thank you very much for reading this article.

NOTE: The information posted in this blog /forum (http://www.karachistockexchange.org/) is based on current affairs & investors point of view. There may be discrepancy in the ground realities.

Written by: Rana Khurram

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